How can fiscal policy influence economic indicators such as unemployment and inflation?

Fiscal policy refers to how the government uses its spending and tax policies to influence the economy. When the government increases spending or cuts taxes, it puts more money into people's hands, which can create more jobs and reduce unemployment. For example, if the government builds new roads, it not only hires workers directly but also helps businesses grow, leading to more jobs. On the other hand, if the government raises taxes or cuts spending, it can slow down the economy, leading to higher unemployment and potentially lower inflation. Thus, by carefully adjusting its fiscal policies, the government can help stabilize the economy and improve important indicators like unemployment and inflation.